PRESS RELEASE
Pearland City Council approved a resolution in support of Proposition 7, a constitutional amendment for increased state funding for transportation.
Passage of Proposition 7 will provide additional transportation funds for on-system (TxDOT) roadways, which will allow more funds that traditionally are awarded to TxDOT projects to be awarded to local governments through the Houston Galveston Area Council (H-GAC) Transportation Improvement Program (TIP). With the passage of Proposition 7, several City of Pearland projects, currently being evaluated for TIP funding, will have a significantly increased chance for funding.
Texans will vote on a proposed constitutional amendment on November 3 that will provide billions more in state transportation funding without new taxes, fees or debt. The Texas Sales and Use Tax Revenue for Transportation Amendment, Proposition 7 is on the November 2015 ballot as a legislatively-referred constitutional amendment, which was approved by the State Legislature earlier this year. The measure, upon voter approval, would provide additional funding for the State Highway Fund.
This new revenue for the State Highway Fund would be used to construct and maintain non-tolled roadways, purchase rights-of-way and make payments on general obligation bonds issued by the Texas Transportation Commission.
The funds would be provided from two sources:
- Beginning in fiscal year 2018 (Sept. 1, 2017), up to $2.5 billion will be dedicated to the State Highway Fund annually from the state’s general sales tax, once the sales tax totals $28.0 billion. This allocation would expire on September 1, 2032.
- Beginning in fiscal year 2020 (Sept. 1, 2019), 35 percent of the motor-vehicle sales tax revenue exceeding $5 billion would be dedicated to the State Highway Fund annually. For example, if $6 billion came in from this tax source, then 35 percent of $1 billion, or $350 million, would be dedicated to the fund. This allocation would expire on August 31, 2029.
The Texas Legislature would be allowed to reduce the amount of sales and use tax revenue allocated to the State Highway Fund if two-thirds of legislators agree to do so. The legislature would also be permitted to extend these revenue allocations beyond their expiration dates for 10-year periods if a simple majority of legislators agree to do so.
This amendment, which follows the 2014 approval of Proposition 1, would provide another significant step toward meeting the unmet funding needs for transportation projects in Texas. However, the addition of this funding source will not “solve” Texas’ transportation funding challenge.
The Texas Department of Transportation (TxDOT) estimates that the state has at least $5 billion in unmet transportation needs each year. Even with the passage of this ballot proposition, the state still faces a smaller but significant funding gap for transportation infrastructure.
The specific ballot language for the proposition reads: “The constitutional amendment dedicating certain sales and use tax revenue and motor vehicle sales, use, and rental tax revenue to the state highway fund to provide funding for non-tolled roads and the reduction of certain transportation-related debt.”
For more information, visit PearlandTX.gov.
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